China News Service, Hong Kong, July 28th. Title: Interview with Wu Hongbin, Chairman of the Hong Kong Manufacturers' Association: Hong Kong businessmen have always been flexible and have little influence from the United States
China News Agency reporter Han Xingtong
The trade friction between China and the United States is heating up and getting worse. Since the occurrence of social incidents in Hong Kong last year, the United States has frequently used the topic to implement so-called "sanctions" on the grounds of Hong Kong issues. However, Hong Kong's political and business circles generally reacted flatly to this, and data such as stock market and property prices remained stable and had little impact. In an exclusive interview with China News Service, Wu Hongbin, chairman of the Chinese Manufacturers’ Association of Hong Kong, said that the business sector has been minimally affected because Hong Kong companies have always deployed flexibly and their target markets are scattered.
At the beginning of the trade friction, Hong Kong businessmen did have a lot of worries. Wu Hongbin called this a "painful period." In May 2019, US President Trump announced a 25% tariff on Chinese goods exported to the United States. Most Hong Kong companies set up factories or production lines in the Mainland, and only calculated by the members of the manufacturers' associations, more than 90%. "Hong Kong businessmen are very angry. The imposition of tariffs will make our products uncompetitive." Wu Hongbin took his jewelry industry as an example. "A 25% tariff is basically nothing to do, even 15% is difficult to do."
After the "painful period" has passed, some merchants will add the price difference after taxation to the product price, which will be borne by consumers. More Hong Kong companies are deploying flexibly under the situation. "Some Hong Kong companies may only account for 20% of the business in the U.S. market, and their business volume is not large, so they choose to abandon the U.S. market, streamline manpower, reduce scale, and try their best to open up other markets. The loss can be made up completely; there are also people in other countries and regions overseas who are considering opening production lines in the local areas, such as Thailand and India, so as to import their products into the American market."
Of course, Hong Kong businessmen whose main market is the United States have indeed suffered severely, but how many businessmen are there? "Very few, only a few percentages," said Wu Hongbin. Market diversification is the main means for companies to avoid risks. Businessmen understand this. They usually diversify their business to different markets and rarely concentrate on one market.
"What trade concessions did the United States give to Hong Kong in the past? On the surface, but in reality, we can't see them. Our products have always been exported to the United States. Tariffs have always been imposed. After the discounts are cancelled, the relationship between us is not so good, but it does not mean that sales orders will be hit. "Wu Hongbin believes that the quantity of orders depends on product quality, buyer wishes and market demand, and has nothing to do with politics. "Doing business is doing business. If you place an order and you have money to pay, then I will deliver the goods. It is very simple and very direct." .
Wu Hongbin and other business people know that Sino-US trade friction is a game between big countries, and competition between countries is really difficult to easily resolve in a short time. The business community can only continue to face flexibly under pressure.
A few days ago, due to the implementation of the Hong Kong Special Administrative Region of the People’s Republic of China Law on Safeguarding National Security, the US authorities signed and passed the so-called "Hong Kong Autonomy Act" and presidential executive orders on this ground. Wu Hongbin criticized the United States for holding Hong Kong as a "pawn" on the negotiating table. As a representative of the business community, he welcomes and supports the Hong Kong National Security Law. "When you decide to invest in a place, the most important one is political stability. , Public security is good, otherwise there will be accidents at any time, you may have nothing." The social turmoil in the past year or so has formed an atmosphere of "everyone in danger", which is not what the business community likes. After the implementation of the Hong Kong National Security Law, similar incidents decreased, "has a significant effect."
Therefore, despite the current tensions between China and the United States, Hong Kong is placed in an awkward position, and the business prospects are still uncertain. Wu Hongbin said he still has confidence in Hong Kong and Hong Kong people. "Today's young people have received a diversified education and have an international perspective, and Hong Kong’s economic freedom, social integrity, and the rule of law provide them with the best stage to perform," he said. People know exactly where they are and what they are doing, and then just follow the great wheel of the times, it must be right. (Finish)